Gas transit contracts: status review

Csilla BartókACER Gas DepartmentMadrid Forum, 27 September 2011

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ACER inquiry on transit

.Launched at the request of the previous Madrid Forum.Addressed to all NRAs.Requested specific information on transit contracts and what barriers they may create.Deadline for responding: 31 August 2011.21 NRAs responded (so far)

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Transit was defined as…

.Transport of natural gas through a network with a view to its delivery to customers, but not including supply

• mainly high-pressure pipelines• other than an upstream• other high-pressure pipelines primarily used in

the context of local distribution of natural gas .Network of origin or final destination is situated in the European Union .Involves the crossing of at least one Member State’s border

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What did ACER learn from its inquiry?

.Changes to the regulatory environment were not introduced for certain transit lines;.Capacity allocation is restricted or is subject to special agreements between TSOs;.Different tariffs or tariff methodologies apply;.Special treatment in terms of preferential balancing, congestion management, fixed transportation rates, other services in kind are offered.

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Review results

EU/ No transit

EU/ Implementing

EU/ Problems identified

EU/ not responded

Non EU member

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What steps shall be taken by the Member States?

.Support the renegotiation of the transit contracts; .Eliminate the discriminatory arrangements in transit agreements;.Follow up with the implementation of the Third Energy Package;.Communicate successful delivery to the Commission.

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What steps shall be taken by NRAs?

.Ensure that transit contracts follow or will follow the regulatory changes;.Continue the implementation of virtual trading points and decoupled entry-exit regimes and solve the problems that may appear;.Share the problems that may arise and communicate successful implementation to ACER.

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What other findings could be mentioned?

.Capacities with limited assignability – a solution to facilitate high utilisation of the network and to cope with technical constraints e.g. when merging zones;.Regional and local distribution charges are not included in transit tariffs;.Transit protected from disruption in emergency;.Quality restrictions of adjacent TSOs may differentiate between flows;.Exempted lines.

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Thank you for your attention

www.acer.europa.eu